Resolution Trust Corporation: Timelier Action Needed to Locate Missing Asset Files

RTC requested a legal opinion from its legal division on this issue. Its decision was that cases where no asset files existed or where asset files could not be located within a reasonable time should be addressed on a case-by-case basis. RTC did not provide plans or a schedule for making the case-by-case review to implement the recommendation and provided no indication that it would undertake the necessary case-by-case reviews. As of August 19, 1994, RTC had not scheduled case-by-case reviews. RTC officials told GAO that some reviews were done at some locations, but could not provide GAO with information on the number of reviews done, the locations where they were done, or the results of any such reviews. Because it does not appear that RTC will take further steps in implementing this recommendation during the final 15 months of its existence, GAO is closing the recommendation at this time.

On July 16, 1993, RTC revised its directive on management of asset files to more strongly emphasize the importance of file management and the recordation of file transfers.

On August 19, 1994, RTC advised GAO that it had developed an amendment for SAMDA/SAMA contracts that placed the discovery and notice responsibility on the contractor. The amendment states that the contractor will determine within 45 days after an asset is assigned to a contractor whether: (1) the files for the asset have been provided by RTC; (2) the files are complete enough to perform the services required; (3) the asset is being managed under a different agreement or contract with RTC; (4) the asset has been placed in a RTC sales event; (5) RTC has disposed of or sold its interest in the asset; and (6) the services required will be of little or no value to RTC. After making the determination, the contractor is to notify RTC in writing on those assets where files are not available and where any services required would be of little or no value to RTC. Unless notified in writing by RTC, the assets identified will no longer be subject to the agreement.

A new directive covering records management activities during conservatorship and receivership has been issued. This directive provides more formal procedures for inventorying asset files in conservatorships and receiverships and coordinating the effective and efficient transfer of asset files from these units to asset management contractors. A designated records coordinator will work with Field Office Records Management to ensure among other things that all records, including all asset files, are properly inventoried at the document level prior to assignment to asset management contractors.